In 2013, you would have been hard-pressed to talk someone into playing real estate investment trusts (REITs). But with REITs returning 18 percent right now, you might want to reconsider — especially when you consider that’s more than 400 percent higher than Treasury bonds’ 3.8 percent return. Michael Widner, a REIT analyst for KBW Bank, said investors can expect “20 percent or more” in 2014. That figure comes from the combination of REITs trading at a 20 percent discount to their historical averages and their generous yields. David Cohen, manager of the Eudora Fund, said that Annaly Capital Management, Inc. (NLY) is a good play on the whole sector for 2014, and it pays an 11.4 percent dividend. But, of course, his fund has 4.4 percent of its assets in NLY. You’ll have to make up your own mind as to whether NLY is the way to play REITs in 2014.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services: